We're moving "PO from $63 to $70. Our sensitivity analysis suggests that margins in the transportation segment are likely to show further expansion. Despite the multiple rerating higher, TEL still trades at 14x C15 EPS with solid cash flows and an increasing dividend," the bank said in a note.
- TEL's revenue growth has slightly outpaced the industry average of 1.9%. Since the same quarter one year prior, revenues slightly increased by 6.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.08, which illustrates the ability to avoid short-term cash problems.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, TE CONNECTIVITY LTD's return on equity exceeds that of both the industry average and the S&P 500.
- 38.06% is the gross profit margin for TE CONNECTIVITY LTD which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.61% is above that of the industry average.
- Powered by its strong earnings growth of 30.76% and other important driving factors, this stock has surged by 48.68% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TEL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- You can view the full analysis from the report here: TEL Ratings Report